The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
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________ are a form of regional integration where member countries lower internal trade barriers and establish a common barrier against nonmembers
A) Customs unions B) Free trade areas C) Reciprocal trade agreements D) None of the above.
The Euro, like the European Monetary Union which preceded it, is
A) opposed by most politicians. B) favored by most economists. C) likely to improve the use of monetary policy to deal with contractionary shocks which strike only one or two countries in Europe. D) all of the above. E) none of the above.
All natural resources are nonrenewable
Indicate whether the statement is true or false
Capital controls:
A. can be controls on capital inflows. B. can only be controls on capital outflows. C. must be controls on both capital inflows and outflows in order to be effective. D. can be controls on capital inflows or outflows.